Bitcoin BTC$94,324.43 There was no rebound on Friday, and the stock remained trading lows below $95,000 late in the U.S. after a shocking week that pushed prices to their lowest since May.
The largest cryptocurrencies are once again underperforming US stocks, with major US indexes holding modest gains until minutes before the close. BTC is on track to record a 9% decline this week, its worst performance in eight months.
Ethereum Ethereum$3,133.83trading below $3,200 and down more than 11% since Monday, Solana's SOL worsened even further. sol$140.16 It decreased by 15% over the same period. XRP$2.2842 It held up with just a 1% decline, perhaps buoyed by the debut this week of the first U.S. spot ETF published by Canary Capital.
Crypto stocks were mixed following Thursday's steep decline. MicroStrategy (MSTR), the largest public holder of Bitcoin, fell another 4%, falling below $200 for the first time since October 2024. Exchange Bullish (BLSH), Ethereum Treasury BitMine (BMNR), miners CleanSpark (CLSK), MARA Holdings (MARA), and Hive Digital (HIVE) fell between 4% and 7%.
On the positive side, miner Hut8 rallied 6% following the financial results of American Bitcoin, a joint venture with the Trump family, while digital brokerage Robinhood (HOOD) and BTC miner Riot Platforms (RIOT) rose about 3%.
“Information vacuum'' clouds investor confidence
Bitfinex analysts said that the current market downturn is mainly due to the uncertainty of the major economic situation in the United States and the subsequent direction of monetary policy. The data outage was the result of the longest U.S. government shutdown, which lasted from Oct. 1 until Thursday, when the government stopped releasing inflation and jobs data.
“Market retracements are the result of an information vacuum and political uncertainty,” they wrote in a Friday note shared with CoinDesk. “Investors are on hold as key economic indicators to guide the market and the Federal Reserve continue to be lacking.
But the spending bill passed by lawmakers to end the government shutdown only provides money to reopen the government through Jan. 30, weighing on investor sentiment. “The Interim Funding Bill does not resolve the uncertainty, it only postpones the problem further,” Bitfinex analysts added.
Noel Acheson, author of Crypto Is Macro Now, said the recent drawdown was a necessary correction after months of range-bound consolidation and failure to sustain a breakout above $120,000. “I need to get over this flash before I can breathe easier,” she wrote. “If that happens, it would strengthen our long-term view for BTC, but we are not there yet.”
Acheson added that the main driver for BTC remains macro liquidity. Although further Fed rate cuts may not materialize until late in the first quarter of 2026, expectations for balance sheet adjustments, other easing measures, and “liquidity injections” could rebuild optimism for risk assets, including BTC, he said.
BTC heading towards $84,000, Reddon CIO says
Meanwhile, John Glover, chief investment officer at crypto lender Reddon, said technical indicators suggest Bitcoin may still have plenty of room to fall.
He noted that a break below the 23.6% Fibonacci retracement level at just under $100,000 would pave the way for the next key support level near $84,000.
Analyst John Glover outlines the trajectory of Bitcoin's bear market (Ledn/TradingView)
Glover believes the current decline is part of a Bitcoin bear market and predicts volatility in the coming months. “Prices will likely rise above $100,000 before a sustained break below $90,000,” he said, noting that a full correction could last until the summer of 2026.
